The Chinese motoring press are reporting that the ill fated partnership between Nanjing motors and Fiat has run its course, and will be formerly seperating next month. This goes against the announcement earlier this year where Fiat and Nanjing decieded to step back from the brink and invest 3 billion RMB into their deal.
Since Fiat and Nanjing had a bust up, Fiat has been continually looking for a new joint venture partner and has since teamed up Zotye (Zotye will be producing the Lancia range of cars in China), and Chery to do make Fiat/Alfa Romeo automobiles in China.
Fiat seems determined to up its market presence in China, which currently is limited to a set of developing nation only cars when China Car Times believes Fiat should be offering the Punto, Multipla, Panda, Brava etc in China. Fiat did plan to import a range of cars, but according to our sources Nanjing was opposed to the plan saying it wasnt profitable (of course it isnt, the cars wouldnt be passing through Nanjing motors factories!)
The Fiat Nanjing Joint Venture was planning to sell 50,000 cars this year, however, in the first six months of ‘07, sales were a dismal 11,000 units.
Fiat and Nanjing originally poured 3 billion RMB into the joint venture in 1999, each party holds a 50% stake.
Does this mean that in the new year we will see a new NAC vehicle that looks remarkably like a Fiat?
Perhaps the Soyat range will expand dramatically.